Question
ou are provided with a choice of four different products to produce. Product A Product B Product C Product D Selling price per unit 120
ou are provided with a choice of four different products to produce.
Product A | Product B | Product C | Product D | |
Selling price per unit | 120 | 80 | 75 | 100 |
Variable cost per unit | (40) | (20) | (30) | (30) |
Contribution per unit | 80 | 60 | 45 | 70 |
Labour time per unit | 10 | 5 | 9 | 7 |
Which one of the products should you prioritise if the business has limited labour available to use for production?
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Cornerstones of Managerial Accounting
Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman
3rd Canadian edition
176530886, 176721231, 978-0176721237
